How Much Will Xabi Alonso’s Dismissal Cost Real Madrid?
The dismissal was swift, but the contract hid a crucial detail. Xabi Alonso’s exit from Real Madrid is also being decided behind closed doors.
An ambitious appointment that ended early
Xabi Alonso’s spell as Real Madrid head coach came to an end this Monday, just months after it began. The Basque manager arrived at the Santiago Bernabéu last summer as a long-term project, signing a three-year contract with the club.
His appointment did not come cheap. According to German outlet Kicker, Real Madrid paid between €12 and €15 million to Bayer Leverkusen to secure his release, while also agreeing to a salary reported to be between €7 and €9 million per season.
The key clause that changes everything
Once his dismissal was confirmed, the obvious question followed: how much would Real Madrid have to pay to terminate his contract? The answer, however, is not as straightforward as covering the full three years.
According to information revealed by Cadena COPE, Xabi Alonso’s contract included a specific clause that has now been triggered. It stated that if the club decided to sack him during his first season, it would only be required to pay that initial year, not the entire length of the deal.
How much will Xabi Alonso earn after his dismissal?
That contractual detail significantly reduces the financial impact on Real Madrid. Instead of paying compensation for three seasons, the club will only cover the salary corresponding to the first year of the contract.
In practical terms, Xabi Alonso will receive between €7 and €9 million as compensation for his early exit—far less than what he would have earned had the full contract been honored.
An ending that also leaves lessons
Beyond the sporting fallout, the Xabi Alonso case once again highlights the importance of contracts and fine print in elite football. Real Madrid made a bold bet on the Basque coach, but also protected itself against the possibility of an early split.
The project failed to take off on the pitch, but in the boardroom the club avoided a much heavier financial blow. For Xabi Alonso, the chapter closes sooner than expected—along with a significant payout, though well short of what the original contract stipulated.
